Practice+Q_s+for+Exam+2+answers

Practice+Q_s+for+Exam+2+answers - 108. Given the following...

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108. Given the following events, what is the per-unit value of ending inventory on November 30 if this company uses a weighted-average perpetual inventory system? November 1: 5 units were purchased at $6 per unit. November 12: 10 units were purchased at $7.50 per unit. November 14: 7 units were sold for $14 per unit. November 24: 12 units were purchased at $10 per unit. A) $6.00. B) $7.00. C) $8.80. D) $13.00. E) $21.80. Answer: Calculation: C Purchases Cost of goods sold Balance Date Units Unit cost Total Units Unit cost Total Units Unit cost Total Nov. 1 5 $6.00 $30 5 $6.00 $30 Nov. 12 10 $7.50 $75 15 $7.00 * $105 Nov. 14 7 $7.00 $49 8 $7.00 $56 Nov. 24 12 $10.0 0 $120 20 $8.80 ** $176 * $105/15 units = $7.00/unit **$176/20 units = $8.80/unit 109. Given the following information, determine the cost of ending inventory at June 30 using the LIFO perpetual inventory method. Assume this is the first month of the company’s operations. June 1: 15 units were purchased at $20 per unit. June 15: 12 units were sold. June 29: 8 units were purchased for $25 per unit. A) $200. B) $220. C) $260. D) $275. E) $300. Answer: C Calculation Purchases Cost of goods sold Balance Date Units Unit cost Total Units Unit cost Total Units Unit cost Total
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June 1 15 $20 $300 15 $20 $300 June 15 12 $20 $240 3 $20 $60 June 29 8 $25 $200 3 8 11 $20 $25 $ 60 $200 $260 121. A company uses the periodic inventory system and had the following activity during the current monthly period. November 1: Beginning inventory 100 units @ $20 November 5: Purchased 100 units @ $22 November 8: Purchased 50 units @ $23 November 16: Sold 200 units @ $45 November 19: Purchased 50 units @ $25 Using the weighted-average inventory method, the company's ending inventory would be reported at: A) $2,000. B) $2,200. C) $2,250. D) $2,400. E) $4,400. Answer: B Calculation: 100 @ $20 $2,000 11/5 100 @ $22 2,200 11/8 50 @ $23 1,150 11/19 50 @ $25 1,250 Total 300 $6,600 Weighted average cost per unit: $6,600/300 units = $22 Ending inventory: (300 units – 200 units) x $22 = $2,200 122. A company markets a climbing kit and uses the periodic inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1: Beginning balance of 18 units at $13 each January 12: Purchased 30 units at $14 each January 19: Sold 24 units at a selling price of $30 each January 20: Purchased 24 units at $17 each January 27: Sold 27 units at a selling price of $30 each If the ending inventory is reported at $357, what inventory method was used?
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A) LIFO. B) FIFO.
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Practice+Q_s+for+Exam+2+answers - 108. Given the following...

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